Speculations on the future of Fannie and Freddie

As policy makers work to ease the strain on the mortgage giants Fannie Mae and Freddie Mac, a consensus is emerging that the two companies will have to look substantially different in the long term.

Leading figures from across the ideological spectrum say that the companies, which were created by Congress to support the housing market, must be restructured so that they do not threaten the financial system. These voices include Republicans, many of whom have long been critical of the outsize roles of Fannie Mae and Freddie Mac in the mortgage market, and some Democrats, who have generally been more supportive of the companies.

Proposals for the companies include making them government-owned and breaking them up into smaller firms, phasing them out of existence entirely, or simply limiting their operations to certain core areas like affordable housing as well as limiting their ability to borrow money.